All Forum Posts by: Mark Jones

Nick, I think you're doing OK. When your dealing with nicer rentals, hitting the 2% rule is less important. Why? You should be able to raise rent on a regular basis and maintain a low vacancy. 

Many Capex items will also be lower (as a % or rent) for these properties as well. A roof, furnace, water heater, etc aren't going to cost you significantly more for this property than a $30k house that rents for $600.

I would make sure that your lease states to what order any payment will be applied. 1. Damages 2. Late fees 3. Rent. That way if they don't include late fees in the payment they are actually shorting you that months rent. 

Another CYA technique is to use technology. A smart phone in a shirt pocket can be used to record either voice or video of any interaction. You may need to check the legality in your state of recording without the other party knowing. 

If anything is truly broken, fix it. If it just needs updated, then I'd weigh how much more rent you can charge vs the cost of the update (particularly for college rentals). Upgrading just to match the amenities of nearby properties for sale doesn't make sense unless you're selling. 

Updates may make sense if you're having trouble keeping the place rented. 

Duplexes in that price range would definitely come with those appliances. I can't help you on SFR.

check YOUR insurance policy. If it's allowed it may make your rate jump. If something were to happen there is a good chance you'd be named in any suit. 

Read the NOLO book for landlords. It will really help you understand your taxes. 

I'm not an accountant. Yes all of that is deductible. BUT, you definitely want positive cash flow after paying PITI. One thing to look at is whether the taxes are reasonable. Could you challenge the assessment?

Why not just leave the softener there and use the softener bypass? No code concern then, I think, and if your buyer wants a softener they can hook a new one up with little work (potentially).

Icorelocks will hook you up.